The rise in interest rates caused variable rate installments to skyrocket by around 50%. One in three families find it difficult to make it to the second week of the month. The alarm was raised by the third sector institution «Social Protection»: «What we have been registering in the last three months is impressive. According to recent data from Coldiretti, Italians spent almost 13 billion euros more in 2022 to secure food and drink. This means that our families’ budget has already been eroded to put bread, pasta, rice, vegetables, meat and fish in the shopping cart. Now there is also an increase in mortgages, which, by the way, are difficult to renegotiate. One in three families find it difficult to make it to the second week of the month. And the answers coming from the State are insufficient”, says president Letterio Stracuzzi.
«Whoever is late in paying one or two installments cannot, in fact, negotiate new conditions with the banks. First, it is necessary to resolve the past and often, in fact almost always, it is impossible», continues the president, noting that we are dealing with a dog chasing its tail. The only solution, then, “is to access law 3”, the so-called suicide savings law, which makes it possible to alleviate the debt position and therefore contain the risk that the most fragile and in difficulty may reach extreme conclusions .
Also because, continues Stracuzzi, “wages are growing decidedly less. According to the report by Aran, the business representation agency for public administrations, between 2013 and the end of 2022 wages increased by 6.7% and prices by 13.8% in the same period. It is clear that something is wrong and that the umpteenth blow delivered by the crazy mortgage payments creates a very significant and dangerous social dysfunction». So the emergency is getting bigger. “Between precariousness, reduced working hours and pirated contracts, there are six million workers in Italy who live in poverty. One employee in three does not earn 12,000 euros gross per year. These numbers are already alarming in themselves», Stracuzzi concludes, according to which now «they need to be revised precisely because of the tsunami effect that was triggered by the high mortgage rate. Therefore, it is important to know that law 3 exists and exactly remedies these situations of profound injustice. Having debt is not a fault, especially if you don’t know it. It is a norm that must be disseminated as much as possible because people’s lives are at stake».
Source: IL Tempo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
